Correlation Between Rogers Communications and Ascot Resources
Can any of the company-specific risk be diversified away by investing in both Rogers Communications and Ascot Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Rogers Communications and Ascot Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogers Communications and Ascot Resources, you can compare the effects of market volatilities on Rogers Communications and Ascot Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Rogers Communications with a short position of Ascot Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers Communications and Ascot Resources.
Diversification Opportunities for Rogers Communications and Ascot Resources
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rogers and Ascot is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Ascot Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascot Resources and Rogers Communications is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Rogers Communications are associated (or correlated) with Ascot Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascot Resources has no effect on the direction of Rogers Communications i.e., Rogers Communications and Ascot Resources go up and down completely randomly.
Pair Corralation between Rogers Communications and Ascot Resources
Assuming the 90 days trading horizon Rogers Communications is expected to under-perform the Ascot Resources. But the stock apears to be less risky and, when comparing its historical volatility, Rogers Communications is 2.09 times less risky than Ascot Resources. The stock trades about -0.19 of its potential returns per unit of risk. The Ascot Resources is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Ascot Resources on October 17, 2024 and sell it today you would earn a total of 2.00 from holding Ascot Resources or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rogers Communications vs. Ascot Resources
Performance |
| Timeline |
| Rogers Communications |
| Ascot Resources |
Rogers Communications and Ascot Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogers Communications and Ascot Resources
The main advantage of trading using opposite Rogers Communications and Ascot Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers Communications position performs unexpectedly, Ascot Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ascot Resources will offset losses from the drop in Ascot Resources' long position.| Rogers Communications vs. CoinSmart Financial | Rogers Communications vs. Quorum Information Technologies | Rogers Communications vs. DIRTT Environmental Solutions | Rogers Communications vs. Bank of Nova |
| Ascot Resources vs. Bausch Health Companies | Ascot Resources vs. T2 Metals Corp | Ascot Resources vs. TUT Fitness Group | Ascot Resources vs. Rogers Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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